Advice on ex Welcome Finance Loan

Roline83

A good few year back, approximately 2006, my then partner had a loan with Welcome Finance that he was told was secured againt our jointly owned property. He left suddenly and Welcome were rather forceful and aggressive chasing the debt, I reluctantly agreed for the loan to be transferred into my name as they told me that non payment could result in repossession of the home. As time went on I ended up in financial difficulty and stopping the repayments to Welcome. Last year we decided to sell the property and I ended up with a copy of the deeds which actually show nothing related to Welcome Finance, no charges, no secured loans, the only thing on the deeds were the actual mortgage lender details. I also checked my credit file and there is no record of any debt from Welcome Finance or Robinson Way who are now chasing the debt. I have since had written communication sent from Robinson Way who are chasing the debt. Am I within my rights to offer them a token payment inline with advice from the National Debtline with proof of an income and expenditure form knowing that there shouldn't be any come back with regards to the "secured loan" as the house it was secured against is now sold.

foxy-stoat

If the property has been sold, and completed then there will be no comeback on the new owners. They will chase you forever to get the outstanding debt paid though.

Have you bought another property?

EssexHebridean

Did you ever see any proof that the loan WAS in fact secured on the property?

Ben8282

If this loan was in fact secured against a jointly owned property you would have had to consent to this and have been aware.
Your partner left you suddenly. You were contacted by Welcome Finance and persuaded to transfer his loan into your name? Very odd. Have never heard of somebody's loan being transferred into somebody else's name. Did they send you a new loan agreement? How was this transfer of liability for the loan carried out? On what basis did Welcome Finance contact you to discuss your partner's loan? Where was your partner? Why did you not refer them to him or take the matter up with him? Why did you not request evidence that your partner had fraudulently taken out a secured loan on a jointly owned property without you having consented to this?
You say that you experienced financial difficulty and stopped making the payments to Welcome. How long ago was that? What happened then - you don't say what happened when you stopped making the payments just that you stopped them.
You then say that last year WE decided to sell the property. Presumably by WE you mean you and the partner who suddenly left you. So you were back together or at least back in contact. Did you never think to suggest to him that he may like to resume payments on his loan?
The property is now sold. Who has the money? Was it split between you or …? Clearly neither of you thought about repaying the loan. Now presumably you live at a new address and YOU, not your partner, have out of the blue been contacted by this debt collector Robinson Way.
Why do I have trouble taking this seriously …..

Roline83

I was aware that the loan was against a jointly owned property however this loan was not in my name, solely in my partners name, not a joint loan.

I was contacted by Welcome Finance by a “field representative” who called at the house, despite telling them my partner had left they were very persistent. As the secured loan was in arrears, they gave me the option to take the repayments on and persuaded me to do this stating it would be the best course of action going forward. I did have a copy of a new loan agreement and this was brought out for me to sign. Had I known where he was then of course I would have pointed them in his direction. I fell into financial difficulties around 2010 and stopped making the repayments then received letters from an external debt collection agency who had the debt once Welcome Finance were no more.

Yes, WE decided as he had filed for divorce so there was some contact. As not all human beings are decent, he didn’t take any responsibility for any other debts he left when he did. The property was sold, at £5k loss, so no one has any money, we are both responsible for paying this shortfall back. I do live at a new address and yes I, not my now ex, have been contacted for the balance of the loan which as I said previously and in the initial post which is now in my name.

I think I’ve answered all of the questions that you bombarded me with.

Roline83

@ EssexHebridean

I’ve asked Robinson Way for documents from when I took the loan over and can’t see anything to say it’s secured.

Ben8282

Roline83 wrote: »

@ EssexHebridean

I’ve asked Robinson Way for documents from when I took the loan over and can’t see anything to say it’s secured.

Obviously it wasn't then was it? I assume that you never read the 'new' loan agreement at the time or you would have seen then what you have just seen now.

I was also thinking that in order to have taken out a secured loan on the property back in 2006 there would have to have been sufficient equity in the property to have covered this second charge (presumably there was also a mortgage?).
Now in 2019, despite either the property being mortgage free in 2006 and therefore no charge of any sort existed on it and it was owned outright OR despite 13+ years of mortgage repayments plus whatever equity existed back in 2006 to have been able to obtain a secured loan (or rather believe that he had taken out a secured loan because in reality the loan wasn't secured) you have sold the property at a price representing a £5k loss and, to quote you, nobody has any money and you have to pay this shortfall back. This is totally inexplicable.

jonesMUFCforever

Was the house repossessed?

If not then the first mortgage lender would not have allowed the sale to proceed - surely?

Roline83

When the house was bought prices were at an all time high and this decreased as the years went by. To sell the property I had to go through a permission to sell process where the lender would let us sell the property, this involved going through a detailed income and expenditure form, having the house valued by an agent the lender instructed, they then took into consideration the value of the house and the offer that was made by the buyer and they would consider the shortfall and then would give permission to sell.